East Asian Economies

The World Bank study entitled The East Asian Miracle observed that eight high performing Asian economies achieved not only high average rates of economic growth but also declines - sometimes dramatic declines - in income inequality. The two characteristics together were dubbed the East Asian Miracle. This essay provides available evidence on the trends in absolute poverty and the degree of income inequality in seven east Asian economies and concludes that while these economies have achieved substantial reduction in absolute poverty, the same cannot be said about income inequality. In fact, the issue of inequality could get to the centre stage in the prevailing crisis in the region.